Self Quiz

Answer Sheet

The correct answer with an explanation is provided for each question below.

When establishing your organizational priorities, it is important to:

A. Start from scratchB. Disregard what other organizations are doing in your communityC. Formally adopt the prioritiesCorrect! Once you have set the priorities, it is a good idea to adopt them formally. Formal adoption facilitates decisions about the organization's direction and allows everyone to take ownership of the priorities.D. Only look at existing programs

The S-W-O-T Analysis refers to:

A. The Strengths-Weaknesses-Opportunities-Threats Capacity AnalysisCorrect. The Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is a tool to help understand your organization's ability and capacity to fundraise.B. Establishing that there is bug problem in your buildingC. A Special-Watershed-Opportunity-TrainingD. Analysis of a British slang term for an inoffensive person who nevertheless offends his peers by giving too much attention to his schoolwork

When creating a fundraising budget

A. include direct and indirect costs B. get both staff and boardmembers involvedC. plan for a surplusD.all of the aboveCorrect. Thinking about direct and indirect costs, planning for a surplus at the end of the year, and getting all staff and board members involved is critical to your budget.

The "pyramid of giving" refers to:

A. an ancient tradition started in the NileB. a fun special event you can do on the riverC. building your membership base to larger and larger giftsCorrect. The "pyramid of giving" refers to the process of building a membership. You begin by recruiting people as volunteers and eventually move them into becoming members giving larger and larger gifts. The number of people decreases as you move to larger and larger gifts, which is why it is necessary to recruit as many volunteers and annual giving members as possible.

You should strive for donations from 60% of your organization's board.

A. TrueB. FalseCorrect. You should strive for donations from 100% of your board! When all board members give, it demonstrates that all are committed and active in the organization. This is an important message to potential donors. Would you want to give to an organization if its own board members are unwilling to contribute money? An organization that can report 100 percent board giving can leverage more donations from other sources.

Planned giving refers to:

A. donation of a stockB. gifts where the donor receives a fixed income from the organizationC. donation of a title deed for a property after deathD. all of the aboveCorrect. Planned giving can be donations of stocks, property deeds, or gifts that allow fixed income from the organization.

The key to a special event is:

A. getting everyone out on the riverB. planningCorrect. The key to a successful special event is being organized and planning ahead. Remember, when planning a special event you should consider volunteer and staff resources, financial resources, organizational image, audience, and timing.C. finding a popular performerD. making sure to have a silent auction involved

The most stable funding source is:

A. membershipCorrect. While grants and corporate donations are important sources of funding for many types of projects, donations from individuals, local industries, and private businesses are especially important. Although they may initially require a higher investment in staff time and resources, these private sources of funding should be the base of your financial support because they are more stable and have fewer restrictions than grants. In the long term, they will actually save staff time in researching options. Grants are unpredictable; their availability can change due economic conditions and changes in political priorities.B. grantsC. corporate donationsD. special appeals

Which funding source (on average) has the highest cost to profit ratio?

A. membership (renewal)B. membership (acquisition of new members)Correct. See the chart below for expected costs per $1.00 raised.

Source of Funds

Expected Costs

Membership

$0.20 to $0.30 per $1.00 raised

Special Events

$0.50 to $1.00 per $1.00 raised

Corporations/Foundations

$0.20 per $1.00 raised

Direct Mail (acquisition)

$1.25 to$1.50 per $1.00 raised

Direct Mail (renewal)

$0.20 to $0.25 per $1.00 raised

C. corporate donationsD. foundation donations

What are the top characteristics that funders look for in your organization?

A. States its mission, purpose, and goals clearlyB. Shows evidence of and articulates the needs of those being servedC. Is open and inclusive in procedures, programs, and processesD. all of the above Correct. A funder wants to see an organization that:

States its mission, purpose, and goals clearly

Shows evidence of and articulates the needs of those being served

Explains how its programs work, how much they cost, and what benefits they produce

Shares financial information such as costs of governance, operations, and programming